SUMMER TRAINING PRESENTATION ON:

HORIZONTAL EXPANSION OF COCA COLA IN LUCKNOW

BYMD SOHRAB KHAN SYED MOHD FAISAL SUPERVISOR: CHITRESH TIWARI

CONTENTS
COMPANY PROFILE INTRODUCTION OF COCA-COLA COMPANY INTRODUCTION TO THE PROJECT BENEFITS OF HORIZONTAL EXPANSION OBJECTIVES OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS FINDINGS CONCLUSION RECOMMENDATIONS LIMITATION SUGGESTIONS

COMPANY PROFILE:
NAME: COCA COLA PVT LTD FOUNDED :1886 HEAD QUARTER:ATLANTA GEORGIA,USA INDUSTRY:BEVERAGES CEO & PRESIDENT : MUHTAR KENT Founder(s) :Asa Griggs Candler Employees146,200 (Dec 2011) REVENUE:$2.31 BILLION

Introduction of Coca-Cola Company

Dr. John Smith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 1886. The name was suggested by john Timbertop's bookkeeper frank Robinson. The world's largest beverage company. While much of the world has changed since 1886. Consumers in all over the world reach for the products of The coca- cola company more than a billion time every single day .

Introduction to the Project

Horizontal Expansion: Expansion of business capacity through the absorption of facilities or buildings as well as through the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets.

Reason for Expansion

The ultimate objective of coke is to acquire more customers and serve them properly. While doing Horizontal Expansion take care to the competitors strategy. The main competitor is PEPSI, who has opted Vertical Expansion to generate more sell however Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so COKE is great believer in Horizontal Expansion and this strategy helped to the company to maintain its leadership in the soft drink industry.

Benefits of Horizontal Expansion

Provides Incremental Volume & Revenue for Business. By horizontal expansion there will be more outlets of our product in the market which will sell our product in more quantity. This will generate incremental revenue for the business. Increase market visibility selling at more outlets give more market visibility of the product which gives higher product recognition and brand value to the products. Increase in market power over supplier and down stream market channels.

Products
Coca-cola Thums Up Sprite Limca Fanta Maaza Kinley etc.

Objectives of study
To understand the concept of Horizontal Expansion. To evaluate the existing resources.

To analyze the development of the business and expansion of market coverage.

To know the benefit of Horizontal Expansion for the company at retailers end.

FRANCHIES OVERVIEW
Brindavan bottlers

Lucknow

Sitapur

Barabanki Barabanki

Research Methodology:
Research Type: Descriptive research Method of research: Survey Types of data: Mainly primary data & some secondary. Sources of data: Questionnaire, discussion, Bulletin Sample size: 110 outlets Place : Lucknow

DATA ANALYSIS

1. Number of outlets needs activation elements? Activated= 35 Not activated=75

Activated Non Activated

32%

68%

2. Number of outlets having only coca cola product?

Coke

Both

no coke

18%

26%

56%

3. Number of outlet located at prime position? Prime position-25 No prime position-85

Prime position No Prime position

23%

77%

4. Distribution of trade channel Convenience- 69 Grocery- 21 E&D- 20

Convenience Grocery E&D

18%

19% 63%

5.Sales wise status of outlet distribution.

45% 30% 8.18% 15.45%

Diamond

Gold

Silver

bronze

6. Number of outlet need GLASS ORDER DEMAND. GOD required- 83 No required- 27

24.54%

75.45%

GOD required
No required

FINDINGS
Problem in supply. 32% of outlet were ready to keep coke product while remaining 68% outlets were not ready with the given profit margin. 25% of visited outlet, visi cooler are having only coke product

and 75% of outlets were having both the product.

Cont
23% of VISICOOLER are at prime position where consumer can see our product and choose as per there need. 63% outlets are convenience store, 18% are under the E&D and remain under 19% are glossary shop.

30% market cover under the silver categories where as remaining

8%, 16%, 45% are under diamond, gold, bronze respectively.

Conclusion:
Coca-Cola is the growing soft drink brand in
LUCKNOW region & most selling brand in the region is THUMPS UP, SPRITE AND MAAZA. Prime position of VISICOOLER outside the outlet plays an important role in the selection of the soft drink by customer. Few activation elements like Table Top, Glow Shine Board, Hanger; Road Stand plays a major role in increasing sell of the soft drink. Supply of product as well as stock keeping unit is not up to the mark.

Recommendation
Efficiency in supply chain should be increased by eliminating unnecessary intermediaries. Should adopt aggressive marketing strategy. Regular visit to distributors. Sales promotion and advertising to be made more frequent for brand building. Communications should be improved. Fulfill the Demand of product by company. In the field of sales situation. Company should make plans for better performance to the sales man.

Contd
Company should be implementing the customer's suggestions and complaints about products, service policies, price changes, advertising companies etc.

Suggestions
Marketing Executive needs to visit all the outlets regularly to keep the VISICOOLER core. Sales Executive should try to increase sell of product so that maximum outlets could the benefit of up gradation. Sales Executive need to put effort to increase the required number of GOD as per the VISICOOLER size that they can keep 3day stock to meet the demand. Delivery must on time.

Limitations
1) The time period of study was only for two month so it was not possible to cover all the areas. 2) The area of survey was Lucknow district and it focuses only urban area up on which whole perception can not be made. 3) The training was carried on in the peak season so market developer was not so supportive. 4) Some respondents left some of the questions unanswered which created problem in drawing right conclusion.

QUESTIONNAIRE
Q.1 which brand do you sell more? OTHER 10% A. Coca Cola C) Pepsi B. other PEPSI
35%

COCACOLA 55%

Q. 2 Do customers prefer to buy such brand beverage, which is very much advertised? a) Yes b) Somewhat20% 5% YES SOMEWHAT c) Cant say d) No 15% 60%
CAN'T SAY NO

Q.3 While buying beverage, what does customers give more OTHER preference to? QUALITY 5% 25% a) Quality b) Price c) Brand d) Others
BRAND 65% PRICE 5%

Q.4 what is most attractive to you in our hoardings? a) Size b) Design c) Colors d) Visibility
VISIBILITY 18% SIZE 25%

DESIGN 42%

COLORS 15%

Q.3 which companys official visit more frequently? none a)Coke b) Pepsi 8% c) Both d) none
both 27% pepsi 30%

coke 35%

Q.4 Which company provide better delivery? a)Coke b) Pepsi c) Both d) none
both 3%

none 3% coke 41%

pepsi 53%